The situation
In 2023, the client was targeted in a U.S. TRO action for selling approximately 40 products with copyright risks. The real issues went beyond damages:
- 40 products indicated a systemic product selection problem
- Batch infringement meant a high likelihood of being repeatedly targeted
- A high settlement benchmark would increase future negotiation costs
- Long-term risks to account stability and fund security
But the most fundamental question was: as a factory-based seller with independent manufacturing, design, and development capabilities — why choose the high-risk copycat route? The factory's natural advantages — control over production, structure, and design — meant originality was within reach.
What we did
1. Rapid risk containment — We completed a comprehensive risk assessment and matched the client with a Washington-based legal team experienced in batch copyright matters. Within 48 hours, we reached a global settlement with the opposing law firm: $5,000 for all 40 products.
2. Strategic shift toward originality — Simultaneously, we implemented three key changes:
- Reviewed the source of every product design
- Distinguished sustainable products from high-risk products
- Established an internal "originality-first" decision framework
The core message: a factory's greatest asset is not its machinery — it's control over copyright. When copyright belongs to others, the more you sell, the greater the risk. When copyright belongs to you, the longer you sell, the greater the asset.
The result
- Risk contained during a high-exposure period
- Settlement controlled at $5,000 for 40 products — well within reasonable range
- Avoided setting a high settlement precedent
- Rapid legal response mechanism established
- Client's internal decision-making logic fundamentally upgraded
The client began building original product lines — shifting from one-time risk to compounding asset value through sustainable sales, repeated development, licensing opportunities, and brand barriers.
Results depend on the specific facts of each matter; past outcomes do not guarantee similar results.